For a member to be permanently banned on his fourth ban, you set that number to 3.
However, I just noticed that I have associated that option, with the "Incremental Banning Periods", in other words, it works only if Incremental Banning Periods is set to "Yes", i.e. first time your member is ban, he will be banned for the specified Ban Duration, second time, he will be banned for Ban Duration x 2, etc. As I am looking at it now, there is no reason for these two to be associated. The Incremental Banning Periods can be totally independent than the Number of Bans Before being Permanently Banned.
Maybe I'll change that in the next release.
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